Netflix has entered exclusive negotiations to acquire the film and television studios of Warner Bros Discovery, along with its streaming operations, after submitting a $28-per-share bid, according to a source with direct knowledge of the matter (Reuters).
Warner Bros Discovery — the parent company of HBO and one of Hollywood’s largest content producers — has been exploring strategic alternatives and received second-round bids earlier this week. Netflix, Paramount Skydance, and Comcast had all submitted preliminary offers in recent months.
Netflix’s latest proposal, described as predominantly cash-based, represents a premium over Warner Bros Discovery’s closing share price of $24.54 on Thursday. It also exceeds an earlier bid from Paramount, which reportedly offered nearly $24 per share for the entire company, including its cable assets such as CNN, TNT, and TBS.
Neither Netflix nor Warner Bros Discovery responded immediately to Reuters’ requests for comment.
Strategic Pivot for Netflix
The move marks a significant strategic shift for Netflix as it accelerates its diversification beyond subscription streaming. The acquisition of Warner Bros’ entertainment assets — which include some of the world’s most valuable franchises, such as Harry Potter, Game of Thrones, and DC Comics — would transform Netflix into a vertically integrated media giant with direct control over premium intellectual property.
Such an acquisition would also provide Netflix with long-term exclusive access to a deep content library, reducing its dependency on external studios as it continues to expand into gaming, live events, and broader consumer experiences.
Bloomberg News reported that Netflix has offered a $5 billion breakup fee should regulators block the deal, a move that underscores its confidence in securing approval. According to the report, an agreement could be announced within days.
Industry Pushback and Market Tensions
The prospect of Netflix acquiring a major Hollywood studio has triggered concerns among influential industry figures. As reported by Variety, a coalition of leading film executives has urged the U.S. Congress to intervene if the acquisition moves forward, warning of the potential for serious economic and institutional disruption within the entertainment sector.
Paramount, which has also sought to acquire Warner Bros Discovery in full, has criticized the sales process as biased in Netflix’s favor. According to CNBC, the company raised concerns in a letter sent by its newly merged media unit, urging the Warner Bros Discovery board to empower a special committee of independent directors to oversee the process.
“We strongly urge you to empower such a special committee comprised of directors with no potential appearance of bias or beholdenness to others whose interests may differ from those of the stockholders,” Paramount’s legal advisers reportedly wrote. Paramount did not respond to Reuters’ requests for comment.
Warner Bros Discovery previously rejected a roughly $60 billion offer from Paramount in October, opting instead to move forward with a formal divestiture process for its assets.
As exclusive talks continue, the potential transaction stands to reshape the competitive landscape of global entertainment — consolidating iconic intellectual properties under the world’s largest streaming platform and raising regulatory, economic, and industry-wide questions that may intensify in the days ahead.